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For each of the scenarios below, indicate whether the proposed change wll increase or decrease the number of weeks that this person will work, or if the effect is uncertain. justify your answer by stating whether the change in the budget constraint leads to an income effect, a substitution effect, or both, and draw the new budget constraint. a. the government imposes a flat wage tax of 10 percent b. the government imposes a progressive tax in which a person's first $20,000 of income is not taxed at all and any income they earn above $20,000 is taxed at a rate of 20 percent.
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For each of the scenarios below, indicate whether the proposed change wll increase or decrease the n...
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